As the title of this post suggests, I see the next major support area a full 40% lower that where we are today. This chart shows little-to-no support between here and the lows from the 2008 financial crisis. Perhaps this makes sense given the following two headlines from today:
So demand for oil will be at the lowest it's been in a decade while supply remains the same. Sounds like the perfect formula for lower prices if you ask me.
Keep in mind that this is a long-term chart and that each candlestick represents an entire month of trading. This fall to $35 might take a couple years or more to play out with fits and starts along the way. Regardless, the technicals, along with a deteriorating fundamental outlook, suggest much, much lower prices are in store for crude.